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Cygnus Gold Limited (ASX:CY5), previously referred to as Craton Gold Pty Ltd, deals with the exploration of gold deposits in Australia. It aims to discover high-grade gold deposits in the South-West Terrane of Western Australia.
On 8 May 2019, CY5âs surface sampling activity, which included 353 auger soil samples, confirmed the availability of Nickel anomalies and base metals, at Bencubbin North. The Bencubbin Project is wholly-owned by CY5 and is situated in Wheatbelt region of Western Australia.
The company considers the 70km-long Bencubbin Greenstone to be the main target for sulfide-hosted nickel-copper mineralisation. The PGE analyses have hence confirmed the prospect of magmatic sulfide mineralisation. Area-wise the prospective region extends up to 18km in length, with surface nickel geochemical anomaly.
Several copper and gold anomalies are linked with nickel, with a maximum coincident auger result of 162ppm copper recorded, along with a maximum gold value of 71ppb, both within the greenstone sequence.
The Bencubbin North nickel target has not been drilled or tested with electrical geophysics to get samples for further analysis.
The drilling has been completed at the Stanley targets Kepler and McDougall South and results are awaited to arrive later in May and June.
The companyâs sample has confirmed that the original nickel auger soil has a maximum value of 1,895ppm Ni. After 105 samples determined the quality and content for PGEs, high levels with maximum values of platinum of 57.6ppb Pt and maximum palladium of 28.7ppb Pd were witnessed.
Likewise, in the WA Goldfields, PGE anomalism in soils are linked with mineralised nickel sulfide systems; supporting the presence of magmatic nickel sulfides at Bencubbin.
After these analyses and tests, CY5 will begin to carry out more infill surface sampling in the middle of the month on the highest priority. This sampling would cover the 70km stretch of the Bencubbin Greenstone, in the south tenement. Upon receiving the results of this test, a follow up drill program would be executed.
Besides the Bencubbin North, The Company has completed the first phase of follow-up soil sampling over the Mandiga VMS trend as well.
The company is focussed on the collection of fresh rock samples to study the Ni-Cu-PGE and base metals anomalies. Regarding the same, Cygnus Gold Managing Director James Merrillees stated that the company is overwhelmed after the confirmation of the possibility of nickel and base metals and looks forward to more sampling and drill tests in the months to come.
In its quarterly cash flow report, quarter ending March 2019, the Net cash used in operating activities amounted to A$1,239,777. Net cash used in investing activities stood at A$5,465 and the Cash and cash equivalents at end of the period were A$2,286,898. Total estimated cash outflows for the next quarter was laid down to A$967,418.
Share Price Information:
On the technical front, the stock is at A$0.052 as of 8 May 2019 at 2:38 PM AEST, trading up by 6.122%. In the last six months, the shares have yielded a return of -42.35% and a Year to date return of -24.62%.
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